Big Investors Around The World Are Dumping Stocks For Cash

Friday, November 28, 2014
By Paul Martin

Chris Vellacott, Reuters
Nov. 28, 2014

LONDON (Reuters) – World investors eased back on their exposure to risk assets such as stocks as they grappled with divergent monetary policies and multi-speed growth paths among major world economies, a global poll shows.

A monthly survey of 47 senior investors in the United States, Europe, Britain and Japan found the average recommended exposure to stocks in global balanced portfolios eased for a second consecutive month to 49.1 percent in November from 49.5 percent.

“The greatest risk remains disappointment on global growth level … Markets remain vulnerable to any negative newsflow on macroeconomic indicators, be it in the Euro zone, in the US or even in China,” Dexia Asset Management said in comment sent to Reuters for the poll.

An end to monetary stimulus, in place since the financial crisis, in the United States and Britain as their economies gather momentum stands in marked contrast to policies elsewhere.

Japan, the Eurozone and China are moving toward boosting money supply to counter sluggish or falling economic growth, leaving investors with an uncertain environment to grapple with.

Many still feel global growth is shaky – as evidenced in recent falls in global oil prices prompted by worries energy demand will be weak.

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